Wednesday, December 3, 2008

Hedge fund manager Whitney Tilson was recently on CNBC's Fast Money to discuss Berkshire Hathaway's derivative exposure. Tilson is a deep value investor and you can bet he is very bullish on BRK.A/BRK.B at these levels. If you missed it, we've covered T2 Partners' recent portfolio updates in our hedge fund tracking series. Here's the video:

Additionally, in a recent email, Tilson pointed out another bullish signal on Berkshire: insider selling. Wait... what?!? Charlie Munger, in a recent SEC Filing, disclosed he sold 13% of his BRK.A shares. But, if you read the fine print of the filing, this sale was actually a bullish bet on Munger's part, as Whitney describes,

"If you read footnote 3 of the filing ("This Form 4 is being filed to report a private sale of shares of Class A Common Stock to family members, in exchange for a promissory note."), you'll understand that precisely the opposite is true: he sold them to a family member in exchange for a promissory note.In other words, he found the stock so cheap that he decided to pass the stock along this way -- and pay taxes on the gains this year! -- rather than through his will.It would be hard to find a stronger statement of how cheap he thinks the stock is -- he must believe $77,500 is the lowest basis he will ever see again."

Simply put, Tilson (and many others) are bullish on BRK.A/BRK.B at these levels.

Hedge fund manager Whitney Tilson was recently on CNBC's Fast Money to discuss Berkshire Hathaway's derivative exposure. Tilson is a deep value investor and you can bet he is very bullish on BRK.A/BRK.B at these levels. If you missed it, we've covered T2 Partners' recent portfolio updates in our hedge fund tracking series. Here's the video:

Additionally, in a recent email, Tilson pointed out another bullish signal on Berkshire: insider selling. Wait... what?!? Charlie Munger, in a recent SEC Filing, disclosed he sold 13% of his BRK.A shares. But, if you read the fine print of the filing, this sale was actually a bullish bet on Munger's part, as Whitney describes,

"If you read footnote 3 of the filing ("This Form 4 is being filed to report a private sale of shares of Class A Common Stock to family members, in exchange for a promissory note."), you'll understand that precisely the opposite is true: he sold them to a family member in exchange for a promissory note.In other words, he found the stock so cheap that he decided to pass the stock along this way -- and pay taxes on the gains this year! -- rather than through his will.It would be hard to find a stronger statement of how cheap he thinks the stock is -- he must believe $77,500 is the lowest basis he will ever see again."

Simply put, Tilson (and many others) are bullish on BRK.A/BRK.B at these levels.

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